Is the Ten Year Going to 3%?
These two articles point in a bad direction: China’s 2011 total trade surplus was $183B. The surplus with the USA was $270B; the US was 150% of China’s total surplus. China imports lots of “stuff.” More...
Sins Of The Past
Ben Bernanke has said many times that Marriner Eccles, the head of the Federal Reserve in 1936/37 made a mistake by tightening credit (raising reserve requirements). Bernanke blames Eccles’s actions for the 50% More...
Bernanke Goes All In
Well, we got an inflation target from the Fed. Basically, thinking at the Fed has been eliminated. The process has been automated. Bernanke has convinced the Fed board to adopt Core PCE as a determinate of monetary More...
Will the Fed Bring Clarity or Confusion?
Next Wednesday, between 12:30 and 2PM, we will get a ton of new information to digest and analyze. The Federal Reserve will make a series of statements while unveiling its new communication effort. A portion of More...
A Bet for Bullard: The MF Global Debacle Will Yet Prove to be a Problem for the Markets
James Bullard (St, Louis Fed head) was on TV this morning. He said a number of things that I thought were off base. The biggest was his comment on the collapse of MF Global. Bullard was pretty More...
Did the Fed Just Grease the Skids for Obama’s Refi Plans?
WH and Fed Sleeping Together For me, the most significant development from the Fed’s announcement is a change in policy where the Fed will re-invest proceeds of maturing MBS securities in new issues of Agency More...
